Asia Aluminum privatisation breaks ground on high leverage financing

Independent shareholders approve plan after rare guarantees from large institutional investors.

When minority shareholders of Asia Aluminum voted yes to a proposal to privatise the company last week, they also gave the green light for a highly leveraged financing exercise. This will raise the money needed to take the designer and manufacturer of aluminium extrusion products off the market.

Majority shareholder and chairman, Kwong Wui-chun, needed to raise $500 million to cover all the costs associated with the privatisation, which could have been tricky enough given that Asia Aluminum has a...

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